The 55th GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman on Saturday proposed several key recommendations to simplify tax procedures and provide relief to taxpayers, including individuals and businesses.
The GST on Fortified Rice Kernels (FRK) has been reduced to 5 per cent when supplied through the Public Distribution System (PDS) to benefit weaker sections of society.
Gene Therapy has been fully exempted from GST. This makes advanced medical treatments more affordable.
Inputs for food distributed under government schemes for economically weaker sections will now attract a reduced 5 per cent GST rate.
Exemption from Integrated Goods and Services Tax (IGST) on systems, sub-systems, and tools used for LRSAM manufacturing, aiding the defense sector.
IGST exemption on imports of equipment and consumable samples for International Atomic Energy Agency (IAEA) inspections, supporting international compliance efforts.
Clarified as not liable to GST when sold directly by agriculturists, offering relief to agricultural producers.
GST increased from 12 per cent to 18 per cent on all old and used vehicles, except for certain petrol and diesel variants.
Pre-packed and labelled snacks will now attract 12 per cent GST.
GST of 12 per cent will apply if the blocks contain more than 50 per cent fly ash content.
Now under the Forward Charge Mechanism, potentially increasing costs for corporate sponsors.
Higher pre-deposit required for penalty-only appeals under the Appellate Authority.
No GST will apply to voucher transactions, as they are not considered a supply of goods or services.
Penalties collected by banks and NBFCs for non-compliance with loan terms will no longer attract GST.
The Council has recommended revising the definition to include all retail commodities pre-packed (up to 25 kg or 25 liters) as per the Legal Metrology Act. These goods must carry declarations mandated under the Act and its rules.
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